Electric Vehicle Industry

According to the International Energy Agency's report on trends and developments in the electric vehicle market, more than 10 million electric cars were on the world’s roads in 2020 with battery electric models driving the expansion. Electric car registrations increased in major markets in 2020 despite the Covid pandemic.

According to Zigwheels, the Philippine electric vehicle (e-vehicle) industry “aims to have a nation where the use of electric vehicles is highly promoted, encouraged, and supported by its government and society to develop a transportation landscape that is one with the environment, ecologically and economically.”

The Electric Vehicle Association of the Philippines (EVAP) aspires for the establishment of a national development program for electric vehicles that is anchored on the existing Motor Vehicle Development Program for the automotive industry. This is to be implemented in four (4) phases within a ten-year-period. The first phase (2013) is the launch of the program, including technology upgrading needed by the industry; the second phase (2014 to 2015) involves the build up of the local market and enhancement of its production capacity; the third phase (2016 to 2018) will be for local and export market expansion, together with horizontal and vertical integration with the local automotive industry; and the fourth phase (2019 to 2023) will be the full integration, regional and global, evelopmental evolution in technological advancement and market size up.

“Currently, there are 28 firms engaged in the manufacturing of various electric vehicles. Complementing these companies are 11 parts and component manufacturers and seven importers. The industry currently provides employment to 14,840 individuals. As the government continues to support the use of electric vehicles, the industry is expected to grow in the coming years. Honda, Viar, Gesits (local electric motorbike manufacturer) are already penetrating the market, followed by bicycle producer, United.”

Based on Zigwheels, “with sustainable development as one its main thrusts, the Philippine government has been promoting the use of electric vehicles across the country, including as a form of public transportation. Executive Order 488 (s. 2006) was issued to support the manufacturing of e-vehicles, as well as to further reduce the country’s fossil fuel consumption. This issuance reduced the tariff rate for e-vehicle components to zero, thereby allowing e-vehicle manufacturers to import components at a more affordable price.”

The website states that “in Metro Manila, major cities have started to make use of e-vehicles to transport local residents and transient workers. Electric jeeps and electric tricycles are also getting more and more common in the country’s major business districts and urban areas. The establishment of “green cities” is also expected to generate higher demand for e-vehicles for public transportation. Resorts and local government units have started to invest in e-vehicles, such as electric tricycles and electric jeeps, to reduce carbon emission, to preserve the natural beauty of the environment, and to provide transportation to the growing number of tourists. This trend is now gaining momentum due to heightened environmental awareness. E-vehicles can be found in key tourist spots such as Boracay and Palawan.”

Based on the article by EVAP, the establishment of “green cities” is also expected to generate higher demand for e-vehicles for public transportation. This is seen to catalyze the entry of more efficient modes of public transport and make the Philippines a production hub for e-vehicles in the Southeast Asian region. The possibility of exploring the manufacturing of nickel metal hydride and lithium-ion batteries locally for automotive application is also being considered by EVAP with the Philippine Nickel Industries Association.”

There are bills being proposed by the House and Senate to promote incentives for the e-vehicle industry. Among these are the following:

• Excise duty exemption
• Value-added tax exemption for raw materials
• Parts and capital equipment to be used in e-vehicle manufacturing
• Provision of space for e-vehicle charging stations
• Priority in registration and issuance of plate numbers
• Exemption from the number coding system
• Free parking
• Priority in public utility vehicle (PUV) franchise application

The government also promotes the production of auto electronics, advanced driving assistance systems (ADAS) components, and electric motor powertrains like battery and charging facilities under the Comprehensive Automotive Resurgence Strategy (CARS) program. Its Eco-PUVProgram, which aims to modernize jeepneys, is also intended to help reduce air pollution.